Name:

IB ECONOMICS: Determinants of PED

Watch the video explaining the determinants of PED and complete the following:

https://www.youtube.com/watch?v=0fucGKfqHQU

1. What is the formula for PED?

2. What 2 mnemonics (ways of remembering) this formula does he describe?

3. Complete the following table:

Determinant Explanation Examples: compare 2 goods or services:

one price elastic, one price inelastic
according to this determinant

NOT THE ONES IN THE VIDEO

S
P
L
A
T
 4. How can you use the mnemonic E O I S to remember the relationship between
price elasticity and revenue?

what do the letters stand what do they tell you about the relationship between
for? elasticity and revenue?

EO
IS